Trading at Flybe remains challenging as passenger numbers and revenue at its main UK-based operation continued to be under pressure.
Revenue fell by 0.3% to £133.7 million in the third quarter to 31 December 2011 against the same period a year ago. Capacity dropped by 0.3% to 2.5 million. However, adjusted for the severe weather disruption experienced in Q3 2010, the decline was even more pronounced, showing a fall of 6%, the airline group said in an interim management statement.
Its new Nordic operation, Flybe Finland, a joint venture with Finnair set up in August 2011, generated total revenue of £25.8 million in Q3, £8.3 million of passenger revenue and £17.5 million of other revenue, primarily contract flying for Finnair.
Total group revenue for the period was £165.5 million.
Jim French, Flybe chairman and chief executive officer, said although the company expected market conditions to "remain challenging" it had "achievable growth plans".
"We remain confident about Flybe's long-term future," he added.
During the period, the UK operation received its first four Embraer 175s, with a further six of the 88-seat jets due to be delivered in the 2012-13 financial year.
The carrier also sold the final two of seven Bombardier Dash 8 Q400s to Rand Merchant Bank of South Africa, which were then leased to South African Express under a deal announced in September 2011. Two further Q400s were returned to their lessors, it said.
Across the group, passenger numbers rose by 6.2% on capacity growth of 9.8% causing load factor to fall two percentage points to 59.6%.
The UK operation saw passenger numbers down slightly by 0.2% to 1.69 million, with load factor also slipping by 0.1 of a percentage point to 61.7%.
It grew its UK regional market share to 50.5% against 48% in the previous year.
Source: Air Transport Intelligence news
